Pressure is growing on Chancellor Rachel Reeves to change income tax thresholds which have been frozen since 2021 as 84,000 individuals have rallied behind the campaign. Protestors want Ms Reeves to hike the tax threshold to help state pensioners in the impending Spring Statement.

Spearheaded by Dennis Reed, who took to change.org with a petition, there’s been mounting concern over the freeze on the lowest personal allowance set at £12,570.

The call to action has gained momentum, coinciding with fervent demands for the personal tax allowance’s lower bracket to surge from £12,570 to a heftier £20,000. As March 26 looms, all eyes are on Ms Reeves’ forthcoming Spring Statement, with campaigners keenly awaiting her financial revelations.

Taking his plea to change.org, Mr Reed voiced his alarm over pensioners’ dwindling finances and warned that withholding a tax threshold boost would inflict a “double whammy” upon them, given the governmental move to means-test Winter Fuel Allowance payments.

Dennis said: “Because of the frozen tax personal allowances, the top of the new state pension may breach the current personal allowance of £12,570 in 2026. This would lead to the ludicrous situation of the state pension safety net, which has already been paid for through national insurance and tax, being taxed again. Many more pensioners across the country would be plunged into poverty as a result of political choice.”

Dennis has voiced concerns that individuals his group assists, including 75-year-old widow Colette, could be tipped into poverty if the threshold isn’t raised. Echoing this sentiment, Susan, also a widow who backed the petition, expressed her frustration: “I resent the fact that my husband and I paid full taxes all of our lives and yet still the pensions that we worked hard for are taxed, most unfairly, the tax taken from my state pension would help significantly towards my basic disability extras needed.”

Since its freeze in 2021, the current threshold has brought countless low-income workers under the income tax wing through ‘fiscal drag’. At present, earnings above £12,570 pay 20% tax.

A petition on the Parliament website calling for it to be increased to £20,000 has more than 170,000 signatures and the Treasury has responded to the call. To view the petition click here.

The man behind the petition, Alan Frost, is calling on the powers that be to: “Raise the income tax personal allowance from £12,570 to £20,000. We think this would help low earners to get off benefits and allow pensioners a decent income.”

Meanwhile, the Treasury has firmly stated that it doesn’t plan to implement the financial relief suggested by workers. A spokesperson maintained: “The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility.”

They remarked: “The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds. The Government has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost of many billions of pounds per annum.

“This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on. It would also undermine the work the Chancellor has done to restore fiscal responsibility and economic stability, which are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible.

“The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.”

UK taxpayers brace for impact as tax thresholds stagnate amidst soaring costs of living. The basic 20% tax kicks in at earnings over £12,570, and the 40% rate commences from £50,270 – both thresholds have been static since 2021.

rachel To view the petition, click here.